Russia and Indonesia signed a defense contract today worth one billion US dollars, allowing Indonesians to purchase helicopters, tanks, and submarines. Along with million-dollar business cooperation contracts, this is the result of Russian President Vladimir Putin’s one-day visit to Jakarta.
According to the Associated Press, Russia has decided to lend Indonesia one billion dollars intended for investment in the military, which Indonesians will repay over the next 15 years. Indonesian Defense Minister Juwono Sudarsono – who intends to use the borrowed money to purchase 20 tanks, 15 helicopters, and two submarines – stated that he is happy to thus ‘reduce dependence on the United States,’ which has been their largest arms supplier. Following such a partnership between two countries with nearly 380 million inhabitants, analysts predict further cooling of US-Russian relations.
Putin is the first Russian or Soviet leader to visit this country, home to the largest Muslim population in the world (over 190 million), since 1960. The one-day trip to Jakarta, which he made on his way to the Asia-Pacific Economic Cooperation summit in Australia, is expected to benefit companies from both countries. Cooperation is expected to assist Indonesians in revitalizing outdated mining and oil capacities. The Indonesian mining company Aneka Tambang will sign a contract worth three billion dollars with the Russian giant United Company Rusal, while the oil company Pertamina plans to sign a contract worth one billion dollars with the largest Russian oil company Lukoil. (Tatjana Vukić)
